NEWS BITES ASIAN MARKETS
SmarTone Telecommunications Holdings Ltd. (HK:00315) fell 18.0c (or 1.3%) to close at HKD13.20. The stock fell for a second consecutive week on Friday bringing its two-week fall to 56.0c or 4.1%. Compared with the Hang Seng Index which rose 189.2 points (or 0.8%) in the week, this represented a relative price change of -2.2%. In the past week the market capitalisation has decreased HKD186.8 million.
LONG-TERM RATING (FUNDAMENTALS)
The company paid a dividend of HKD1.43 in the last twelve months. The dividend yield is high at 7.5%.
Price/Earnings Growth | 0.4 |
Price/Sales | 1.4x |
Price/NTA | 26.9x |
Price/Earnings | 13.2x |
Earning Yield % | 7.6 |
Yield % | 7.5 |
% Disc to High | 24.6 |
% Prem to Low | 0.9 |
SHORT-TERM RATING (TECHNICAL)
Its price change has been negative in the short-term over 5 days, medium-term over 3 months and over the period of 1 year. Its short term falls have been combined with weak volume resulting in weak momentum falls over 1, 5 and 30 days. Significantly its price of HKD13.20 is at a discount of 12% to its 200-day moving average price of HKD15.06. Its 52-week range has been HKD17.50 to HKD13.08; it is trading at a discount of 24.6% to its 52-week high and a premium of 0.9% to its 52-week low. HKD1,000 invested a week ago is now worth HKD987 of which HKD13 is a capital loss.
Recommended stop loss: HKD12.21
Present Value HKD1000 (1 year) | 868 |
1-week price change (%) | -1.4 |
Relative Strength (6M) | 8.4 |
P/EMAP50 | 0.95 |
1-month price change (%) | -4.5 |
# Hits (3m) 52-w Low | 2 |
RELATIVE VALUATION INDICATORS - RVI - FUNDAMENTAL ANALYSIS
The stock meets the following value criterion set by Benjamin Graham:
-"Earnings growth over the most recent five years of 7% compounded - that is a doubling of earnings in a five-year period"; the earnings per share have more than doubled in the last 5 years.
-"Stability of growth in earnings over the last 5 years, defined as no more than two declines of 5% or greater in year-end earnings"; there has been 1 decline in earnings in the last 5 years.
RELATIVE VALUATION INDICATORS - RVI - TECHNICAL ANALYSIS
Bearish Signals:
- The price sank 4.5% in the last month.
- This has been exacerbated by firm volume of 1.3 times average for the month.
- Compared with the Hang Seng Index which fell 0.7% for the month, this represented a relative price decrease of 3.8% for the month.
- In the Hong Kong market of 1,302 stocks traded today, the stock has a 6-month relative strength of 8 indicating it is trailing 92.0% of the market.
- The price to 50-day EMAP ratio is 0.95, a bearish indicator. In the past 200 days this ratio has been under 0.95 15 times suggesting further downside. The 50-day EMAP has decreased to HKD13.88. A decrease is another bearish indicator.
SHAREHOLDER RETURNS
Trailing five weeks: the stock fell thirteen times (57% of the time), rose eight times (35% of the time) and was unchanged once (4% of the time). The aggregate volume was 1.1 times average trading of 58,408,753 shares. The value of HKD1,000 invested five weeks ago is HKD976 [vs HKD975 for the Hang Seng Index] for a capital loss of HKD24.
Trailing thirteen weeks: the stock fell thirty three times (55% of the time), rose twenty two times (37% of the time), was unchanged three times (5% of the time) and was untraded once (2% of the time). The aggregate volume was 1.2 times average trading of 149,831,149 shares. The value
